THE cost-of-living crisis will ease in 2024 according to experts, but 62 per cent of Sun readers are worse off than they were last New Year.
A worrying 23 per cent claim they are “much worse off” than at the start of 2023.
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To make your money go further, we asked finance guru Warren Shute for his money tips for each age group.
The award-winning certified financial planner and author of The Money Plan, said: “Millions of people have been through tough times in the last year or so.
“My message is — don’t panic. I can show you some quick wins that will make your money go further and help you plan your budget whatever age you are.”
We asked our Sun cost-of-living panel of readers how they feel about their family finances as we begin 2024.
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Housing costs are still a big challenge, with 57 per cent of the panel struggling to pay their rent or mortgage.
As the energy cap rose from £1,834 to £1,928 for a typical household yesterday, 67 per cent of our readers rate gas and electric bills their top headache.
And 26 per cent say they already find it hard to afford heating, 60 per cent worry about transport costs and 59 per cent say it is difficult to pay for essential groceries.
Fifty-four per cent feel pessimistic about the future while 19 per cent are optimistic.
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Our poll shows that, of 35 to 44-year-olds, nearly half are “concerned” about their finances in 2024, while a fifth feel “gloomy” about them.
Two thirds (63 per cent) of 25 to 34-year-olds are not looking forward to 2024 with confidence about their finances.
That compares to 43 per cent aged 35 to 44, and 38 per cent of 45 to 54-year-olds.
Less than 40 per cent of Sun readers say they plan their finances in the New Year.
AGE 16-24
WE are never taught how to manage money in school, yet it is essential for all of us to get ahead in life. Whether you earn £10k or £110k, if you can’t manage your money, you’ll be stressed.
If you are 18 to 40, consider setting up a LISA (lifetime ISA). You’ll get a 25 per cent bonus on any money paid in up to £4k, and this money can be used for your first house purchase or put towards your retirement.
If you’re 16 you can have a Cash ISA and a Junior ISA if you have enough money to fund them both.
As soon as you start work, pay into your workplace pension and never stop.
AGE 25-34
THIS is the age you might be trying to get on the property ladder, and it may be tough to do it on your own.
But think carefully before buying a joint asset such as a house, because it is very difficult to reverse if a relationship ends up going sour.
If you are given a deposit from a family member, use a deed of trust (gifting trust) to protect this from relationship breakdowns.
If you are buying a property with friends, make sure that you have an agreement written up to lay out the rules of the partnership.
AGE 35-44
WITH your assets increasing, ensure you have a will written and keep it up to date.
If you have a family and dependents, ensure that you arrange life assurance to protect them in the case of your death.
Look at ways that you can boost your income.
Use sites such as entitledto.co.uk to see if you are able to claim any benefits you might be missing.
And if you have some spare time or a skill, consider side hustles to earn extra cash.
Lots of money is now made using sites such as Etsy and driving for Uber.
AGE 55-64
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AS you age, write Lasting Powers of Attorney, which enables someone you trust to manage your money and property, and to decide on your welfare if you lose mental capacity.
There are two types of LPA: Property and Financial Affairs and Health and Welfare.
Check gov.uk/check-state-pension to see how much state pension you will get and how to increase that figure. Or complete form BR19 to apply for a forecast.
Have a clearout and sell your unwanted stuff on Facebook Marketplace, eBay, Vinted or Depop – but be aware they will inform the taxman of your profits.
AGE 65-74
MAKE the most of pension tax relief, which finishes at age 75.
Look into trusts and estate planning, especially if your total estate will be worth more than £500,000 (if you are single) or £1million (if you are a married couple) on death and you want to leave it to your children or grandchildren.
Even people who are in their 60s and 70s should invest. Life expectancy is around 85 for most people.
You can reduce your risk by investing in a global index fund – rather than an active fund – for money you do not need access to in the next five years.
BUDGETING
NO ONE I have ever met likes to budget but I use this rule for dividing your take-home pay:
50 per cent on your regular household costs, including mortgage or rent, utilities and insurance.
30 per cent on your variable spending items such as your groceries, car fuel, personal shopping and going out.
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10 per cent allocated for long-term investing, for retirement – preferably using your pension
10 per cent for more shorter-term savings for holidays and experiences – using NS&I or savings accounts.
